Details Please review BYP18-2 from the text: Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company PepsiCo, Inc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. Instructions (a) Based on the information contained in these financial statements, determine each of the following for each company. 1. The percentage increase (decrease) in (i) net sales and (ii) net income from 2012 to 2013. 2. The percentage increase in (i) total assets and (ii) total common stockholders' (shareholders') equity from 2012 to 2013 3. The basic earnings per share and price-earnings ratio for 2013. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola's common stock had a market price of $41.31 at the end of fiscal-year 2013, and PepsiCo's common stock had a market price of $82.71. (b) What conclusions concerning the two companies can be drawn from these data? Assessment Below you will define the grading rubric for this assignment. 50F Cloudy 12:12 PM 12/10/2021 = 12:07 PM Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2019 2018 $ 7.353 2,432 237 370 (350) 519 (716) 453 (8) (423) (2) $ 12,559 2,399 256 308 (255) 221 (1,708) (531) (28) (115) (4.347) Operating Activities Net income Depreciation and amortization Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges Pension and retiree medical plan expenses Pension and retiree medical plan contributions Deferred income taxes and other tax charges and credits Net tax related to the TCJ Act payments related to the TCJ Act Other net tax benefits related to international reorganizations Change in assets and liabilities: Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable and other current liabilities Income taxes payable Other, net Net Cash Provided by Operating Activities Investing Activities Capital spending Sales of property, plant and equipment Acquisition of SodaStream, net of cash and cash equivalents acquired Other acquisitions and investments in noncontrolled affiliates Divestitures Short-term investments, by original maturity: More than three months-purchases More than three months-maturities More than three months-sales Three months or less, net Other investing, net Net Cash (Used for)/Provided by Investing Activities (650) (190) (8-) 735 (28) 263 (253) (174) 9 882 448 (256) 9,649 (4,232) 170 9,415 (3,282) (2,969) 134 (1,197) (299) 505 (1.939) (778) 253 | 1 3$*** HB5 ' 18 2 333 188 * * * * 10 99' *}]][*41919 16 62 (5,637) (18,385) 12,824 1.498 16 19 (8) (6,437) 2 4,564 (4,007) (4:406) (1,589) 3 Financing Activities Proceeds from issuances of long-term debt 4.621 Payments of long-term debt (3.970) Debt redemption/cash tender and exchange offers (1,007) Short-term borrowings, by original maturity: More than three months-proceeds 6 More than three months-payments (2) Three months or less, net (3) Cash dividends paid (5.304) Share repurchases-common (3.000) Share repurchases-preferred Proceeds from exercises of stock options 329 Withholding tax payments on restricted stock units (RSUS), performance stock units (PSUS) and PepsiCo equity performance units (PEPunits) converted (114) Other financing (45) Net Cash Used for Financing Activities (8.489) Effect of exchange rate changes on cash and cash equivalents and restricted cash Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash (5.199) Cash and Cash Equivalents and Restricted Cash, Beginning of Year 10,769 Cash and Cash Equivalents and Restricted Cash, End of Year S 5:570 (1.352) (4.930) (2,000) (2) 281 (103) (53) (13,769) (98) 112 10,657 $ 10,769 S 10,657 See accompany LO LE and statements. . Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2019 2018 ASSETS Current Assets Cash and cash equivalents Short-term investments - Restricted cash Accounts and notes receivable net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other indefinite-lived intangible assets Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets $ 5,509 $ 8,721 229 272 - 1,997 7,822 7,142 3:338 3,128 747 633 17,645 21,893 19:305 17,589 1.433 1.644 15:501 14,808 14,610 14, 18: 30,111 28,989 2,683 2,409 4,359 4,364 3,011 760 $ 78,547 $ 77,648 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations $ 2,920 $ 4,026 Accounts payable and other current liabilities 17,541 18,112 Total Current Liabilities 20,461 22,138 Long-Term Debt Obligations 29.148 28,295 Deferred Income Taxes 4,091 3.499 Other Liabilities 9.979 9,114 Total Liabilities 63.679 63,046 Commitments and contingencies PepsiCo Common Shareholders' Equity Common stock, par value 17 per share authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,391 and 1,409 shares, respectively) 23 23 Capital in excess of par value 3.886 3,953 Retained earnings 61,946 59.947 Accumulated other comprehensive loss (14:300) (15,119) Repurchased common stock, in excess of par value (476 and 458 shares, respectively) (36.769) (34,286) Total PepsiCo Common Shareholders' Equity Noncontrolling interests 84 Total Equity 14.868 14,602 Total Liabilities and Equity $ 78.547 $ 77,648 See accompanying notes to the consolidated financial statements. 14,-86 8a 14,518 Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2017 $ S 41 41 - 11 0.7 199 TI 1,420 24 1.428 24 - , II 24 2019 2018 Shares Amount Shares Amount Shares Amount Preferred Stock Balance, beginning of year 0.8 41 0.8 $ Conversion to common stock (0.1) (6) Retirement of preferred stock (0.7) (35) Balance, end of year 0.8 Repurchased Preferred Stock Balance, beginning of year (0.7) (197) (0.7) (192) Redemptions (5) Retirement of preferred stock Balance, end of year (0.7) (197) Common Stock Balance, beginning of year 1,409 23 Share issued in connection with preferred stock conversion to common stock Change in repurchased common stock (18) (12) (8) Balance, end of year 1,391 23 1,409 23 1,420 Capital in Excess of Par Value Balance, beginning of year 3:953 3,996 4,091 Share-based compensation expense 235 250 290 Equity issued in connection with preferred stock conversion to common stock 6 Stock option exercises, RSUS, PSUs and PEPunits nverted (188) (193) (236) Withholding tax on RSUS, PSUs and PEPunits converted (114) (103) (145) Other (3) (4) Balance, end of year 3,886 3,953 3,996 Retained Earnings Balance, beginning of year 59.947 52,839 Cumulative effect of accounting changes 8 (145) Net income attributable to PepsiCo 7.314 12,515 4,857 Cash dividends declared-common (5:323) (5.098) (4:536) Retirement of preferred stock (164) Balance, end of year 61.946 59,947 52,839 Accumulated Other Comprehensive Loss Balance, beginning of year (15,119) (13,057) (13,919) Other comprehensive income/(loss) attributable to PepsiCo 819 (2,062) 862 Balance, end of year (14.300) (15,119) (13,057) Repurchased Common Stock Balance, beginning of year (458) (34,286) (446) (32.757) (438) (31,468) Share repurchases (24) (3.000) (18) (2,000) (18) (2.000) Stock option exercises, RSUS, PSUs and PEPunits converted 6 6 10 708 Other 3 Balance, end of year (4-6) (36,769) (458) (34.286) (446) (32.757) Total PepsiCo Common Shareholders' Equity 14:518 11,045 Noncontrolling Interests Balance, beginning of year 84 104 Net income attributable to noncontrolling interests 39 51 Distributions to noncontrolling interests (42) (62) Other, net 1 (1) Balance, end of year 82 84 92 Total Equity S 14,868 S 14,602 $ 10,981 | 32.518 516 469 2 las (425 14.-86 92 44 (49) 14999 = THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, 2019 2018 2017 Net Operating Revenue $ 37,266 $ 34,300 $ 36,212 Cost of goods sold 14,619 13,067 13,721 Gross Profit 22,647 21,233 22,491 Selling, general and administrative expenses 12,103 11,002 12,834 Other operating charges 458 1,079 1,902 Operating Income 10,086 9,152 7,755 Interest income 563 689 679 Interest expense 946 950 853 Equity income (loss)-net 1,049 1,008 1,072 Other income (loss)-net 34 (1,674) (1,763) Income Before Income Taxes 10,786 8,225 6,890 Income taxes 1,801 1,749 5,607 Consolidated Net Income 8,985 6,476 1,283 Less: Net income (loss) attributable to noncontrolling interests 65 42 35 Net Income Attributable to Shareowners of The Coca-Cola Company $ 8,920 $ 6,434 $ 1,248 Basic Net Income Per Share $ 2.09 $ 1.51 $ 0.29 Diluted Net Income Per Share $ 2.07 $ 1.50 $ 0.29 Average Shares Outstanding-Basic 4,276 4,259 4,272 Effect of dilutive securities 38 40 52 Average Shares Outstanding-Diluted 4,314 4,299 4,324 1Calculated based on net income attributable to shareowners of The Coca-Cola Company. Refer to Notes to Consolidated Financial Statements. M' THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2019 2018 2017 Consolidated Net Income $ 8,985 $ 6,476 $ 1,283 Other comprehensive income: Net foreign currency translation adjustments 74 (2,035) 861 Net gains (losses) on derivatives (54) (7) (433) Net change in unrealized gains (losses) on available-for-sale securities 18 (34) 188 Net change in pension and other benefit liabilities (159) 29 322 Total Comprehensive Income 8,864 4,429 2,221 Less: Comprehensive income attributable to noncontrolling interests 110 95 73 Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company $ 8,754 $ 4,334 $ 2,148 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 6,480 $ 9,077 n 7.947 9.266 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 6,480 $ 9,077 Short-term investments 1,467 2,025 Total Cash, Cash Equivalents and Short-Term Investments 11,102 Marketable securities 3,228 5,013 Trade accounts receivable less allowances of $524 and $501, respectively 3.971 3,685 Inventories 3:379 3,071 Prepaid expenses and other assets 1,886 2,059 Total Current Assets 20,411 24,930 Equity method investments 19,025 19:412 Other investments 854 867 Other assets 6.075 4,148 Deferred income tax assets 2.412 2,674 Property, plant and equipment-net 10,838 9,598 Trademarks with indefinite lives 6,682 Bottlers' franchise rights with indefinite lives 109 51 Goodwill 16.764 14,109 Other intangible assets 627 745 Total Assets $ 86,381 S 83,216 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses S 11.312 $ 9,533 Loans and notes payable 10.994 13,835 Current maturities of long-term debt 4:253 5,003 Accrued income taxes 414 Total Current Liabilities 26,973 28,782 Long-term debt 27,516 25,376 Other liabilities 8,510 7,646 Deferred income tax liabilities 2,284 2,354 The Coca-Cola Company Shareowners' Equity Common stock, $c-25 par value; authorized11,200 shares; issued7,040 shares 1,760 1.760 Capital surplus 17.154 16,520 Reinvested earnings 65.855 63,234 Accumulated other comprehensive income (loss) (13:544) (12,814) Treasury stock, at cost-2,760 and 2,772 shares, respectively (52.244) (52719) Equity Attributable to Shareowners of The Coca-Cola Company 18,981 16,981 Equity attributable to non controlling interests 2,117 2,077 Total Equity 21,098 19,058 Total Liabilities and Equity $ 86,381 $ 83,216 Refer to Notes to Consolidated Financial Statements. 411 2019 2018 2017 $ 8,985 $ 6,476 $ 1,283 1,365 1,260 201 219 (280) (1,252) (421) (628) 91 292 (467) 1,459 127 1,218 504 (252) 366 3,442 10,471 7,041 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31, Operating Activities Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss-net of dividends Foreign currency adjustments Significant (gains) losses-net Other operating charges Other items Net change in operating assets and liabilities Net Cash Provided by Operating Activities Investing Activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities Financing Activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year Less: Restricted cash and restricted cash equivalents at end of year Cash and Cash Equivalents at End of Year (4,704) 6,973 (5,542) 429 (2,054) 978 (56) (3,976) 3942992389|| 89819791) 12*83904 3:52 | (17,296) 16,694 (3,809) 3,821 (1,750) 108 (80) (2,312) 23,009 (24,850) (30,600) 1,012 (1,103) (6,845) (227) (9,004) (72) 29,926 (28,871) 1,595 (3,682) (6,320) (95) (7,447) 241 (2,581) 9,318 6.737 257 $ 6,480 $ 9,077 (2,477) 8,850 6,373 271 6,102 4-288 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) Year Ended December 31 2019 2018 2017 Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year 4,268 4,259 Treasury stock issued to employees related to stock-based compensation plans 33 48 53 Purchases of stock for treasury (21) (39) (82) Balance at end of year 4,280 4,268 4,239 Common Stock $ 1,760 $ 1,760 $ 1,760 Capital Surplus Balance at beginning of year 16,520 15,864 14.993 Stock issued to employees related to stock-based compensation plans 433 467 655 Stock-based compensation expense 201 225 219 Other activities (36) Balance at end of year 17.154 16.520 15,864 Reinvested Earnings Balance at beginning of year 63.234 60,430 65,502 Adoption of accounting standards 546 3,014 Net income attributable to shareowners of The Coca-Cola Company 8.920 6,434 1,248 Dividends (per share-51.60, $156 and $1.48 in 2019, 2018 and 2017, respectively) (6,845) (6,644) 6,320) Balance at end of year 65,855 63 234 60,430 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year (12,814) (10,305) (11.205) Adoption of accounting standards (564) (409) Net other comprehensive income (Loss) (166) (2,100) 900 Balance at end of year (13,544) (12,814) (10,305) Treasury Stock Balance at beginning of year (51,719) (50,677) (47,988) Treasury stock issued to employees related to stock-based compensation plans 501 704 909 Purchases of stock for treasury (1.026) (1,746) (3:598) Balance at end of year (52,244) (51,719) (50,677) Total Equity Attributable to Shareowners of The Coca-Cola Company S 18,981 $ 16,98 $ 17,072 Equity Attributable to Noncontrolling Interests Balance at beginning of year $ 2,077 $ 1,905 $ 158 Net income attributable to noncontrolling interests 65 42 35 Net foreign currency translation adjustments 45 53 38 Dividends paid to noncontrolling interests (48) (31) (15) Acquisition of interests held by noncontrolling owners (84) Contributions by noncontrolling interests 3 Business combinations 59 1,805 Deconsolidation of certain entities (157) Other activities 7 Total Equity Attributable to Noncontrolling Interests $ 2,117 $ 2,077 $ 1,905 101 41 Details Please review BYP18-2 from the text: Comparative Analysis Problem: PepsiCo, Inc. vs. The Coca-Cola Company PepsiCo, Inc.'s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. Instructions (a) Based on the information contained in these financial statements, determine each of the following for each company. 1. The percentage increase (decrease) in (i) net sales and (ii) net income from 2012 to 2013. 2. The percentage increase in (i) total assets and (ii) total common stockholders' (shareholders') equity from 2012 to 2013 3. The basic earnings per share and price-earnings ratio for 2013. (For both PepsiCo and Coca-Cola, use the basic earnings per share.) Coca-Cola's common stock had a market price of $41.31 at the end of fiscal-year 2013, and PepsiCo's common stock had a market price of $82.71. (b) What conclusions concerning the two companies can be drawn from these data? Assessment Below you will define the grading rubric for this assignment. 50F Cloudy 12:12 PM 12/10/2021 = 12:07 PM Consolidated Statement of Cash Flows PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2019 2018 $ 7.353 2,432 237 370 (350) 519 (716) 453 (8) (423) (2) $ 12,559 2,399 256 308 (255) 221 (1,708) (531) (28) (115) (4.347) Operating Activities Net income Depreciation and amortization Share-based compensation expense Restructuring and impairment charges Cash payments for restructuring charges Pension and retiree medical plan expenses Pension and retiree medical plan contributions Deferred income taxes and other tax charges and credits Net tax related to the TCJ Act payments related to the TCJ Act Other net tax benefits related to international reorganizations Change in assets and liabilities: Accounts and notes receivable Inventories Prepaid expenses and other current assets Accounts payable and other current liabilities Income taxes payable Other, net Net Cash Provided by Operating Activities Investing Activities Capital spending Sales of property, plant and equipment Acquisition of SodaStream, net of cash and cash equivalents acquired Other acquisitions and investments in noncontrolled affiliates Divestitures Short-term investments, by original maturity: More than three months-purchases More than three months-maturities More than three months-sales Three months or less, net Other investing, net Net Cash (Used for)/Provided by Investing Activities (650) (190) (8-) 735 (28) 263 (253) (174) 9 882 448 (256) 9,649 (4,232) 170 9,415 (3,282) (2,969) 134 (1,197) (299) 505 (1.939) (778) 253 | 1 3$*** HB5 ' 18 2 333 188 * * * * 10 99' *}]][*41919 16 62 (5,637) (18,385) 12,824 1.498 16 19 (8) (6,437) 2 4,564 (4,007) (4:406) (1,589) 3 Financing Activities Proceeds from issuances of long-term debt 4.621 Payments of long-term debt (3.970) Debt redemption/cash tender and exchange offers (1,007) Short-term borrowings, by original maturity: More than three months-proceeds 6 More than three months-payments (2) Three months or less, net (3) Cash dividends paid (5.304) Share repurchases-common (3.000) Share repurchases-preferred Proceeds from exercises of stock options 329 Withholding tax payments on restricted stock units (RSUS), performance stock units (PSUS) and PepsiCo equity performance units (PEPunits) converted (114) Other financing (45) Net Cash Used for Financing Activities (8.489) Effect of exchange rate changes on cash and cash equivalents and restricted cash Net (Decrease)/Increase in Cash and Cash Equivalents and Restricted Cash (5.199) Cash and Cash Equivalents and Restricted Cash, Beginning of Year 10,769 Cash and Cash Equivalents and Restricted Cash, End of Year S 5:570 (1.352) (4.930) (2,000) (2) 281 (103) (53) (13,769) (98) 112 10,657 $ 10,769 S 10,657 See accompany LO LE and statements. . Consolidated Balance Sheet PepsiCo, Inc. and Subsidiaries December 28, 2019 and December 29, 2018 (in millions except per share amounts) 2019 2018 ASSETS Current Assets Cash and cash equivalents Short-term investments - Restricted cash Accounts and notes receivable net Inventories Prepaid expenses and other current assets Total Current Assets Property, Plant and Equipment, net Amortizable Intangible Assets, net Goodwill Other indefinite-lived intangible assets Indefinite-Lived Intangible Assets Investments in Noncontrolled Affiliates Deferred Income Taxes Other Assets Total Assets $ 5,509 $ 8,721 229 272 - 1,997 7,822 7,142 3:338 3,128 747 633 17,645 21,893 19:305 17,589 1.433 1.644 15:501 14,808 14,610 14, 18: 30,111 28,989 2,683 2,409 4,359 4,364 3,011 760 $ 78,547 $ 77,648 LIABILITIES AND EQUITY Current Liabilities Short-term debt obligations $ 2,920 $ 4,026 Accounts payable and other current liabilities 17,541 18,112 Total Current Liabilities 20,461 22,138 Long-Term Debt Obligations 29.148 28,295 Deferred Income Taxes 4,091 3.499 Other Liabilities 9.979 9,114 Total Liabilities 63.679 63,046 Commitments and contingencies PepsiCo Common Shareholders' Equity Common stock, par value 17 per share authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,391 and 1,409 shares, respectively) 23 23 Capital in excess of par value 3.886 3,953 Retained earnings 61,946 59.947 Accumulated other comprehensive loss (14:300) (15,119) Repurchased common stock, in excess of par value (476 and 458 shares, respectively) (36.769) (34,286) Total PepsiCo Common Shareholders' Equity Noncontrolling interests 84 Total Equity 14.868 14,602 Total Liabilities and Equity $ 78.547 $ 77,648 See accompanying notes to the consolidated financial statements. 14,-86 8a 14,518 Consolidated Statement of Equity PepsiCo, Inc. and Subsidiaries Fiscal years ended December 28, 2019, December 29, 2018 and December 30, 2017 (in millions) 2017 $ S 41 41 - 11 0.7 199 TI 1,420 24 1.428 24 - , II 24 2019 2018 Shares Amount Shares Amount Shares Amount Preferred Stock Balance, beginning of year 0.8 41 0.8 $ Conversion to common stock (0.1) (6) Retirement of preferred stock (0.7) (35) Balance, end of year 0.8 Repurchased Preferred Stock Balance, beginning of year (0.7) (197) (0.7) (192) Redemptions (5) Retirement of preferred stock Balance, end of year (0.7) (197) Common Stock Balance, beginning of year 1,409 23 Share issued in connection with preferred stock conversion to common stock Change in repurchased common stock (18) (12) (8) Balance, end of year 1,391 23 1,409 23 1,420 Capital in Excess of Par Value Balance, beginning of year 3:953 3,996 4,091 Share-based compensation expense 235 250 290 Equity issued in connection with preferred stock conversion to common stock 6 Stock option exercises, RSUS, PSUs and PEPunits nverted (188) (193) (236) Withholding tax on RSUS, PSUs and PEPunits converted (114) (103) (145) Other (3) (4) Balance, end of year 3,886 3,953 3,996 Retained Earnings Balance, beginning of year 59.947 52,839 Cumulative effect of accounting changes 8 (145) Net income attributable to PepsiCo 7.314 12,515 4,857 Cash dividends declared-common (5:323) (5.098) (4:536) Retirement of preferred stock (164) Balance, end of year 61.946 59,947 52,839 Accumulated Other Comprehensive Loss Balance, beginning of year (15,119) (13,057) (13,919) Other comprehensive income/(loss) attributable to PepsiCo 819 (2,062) 862 Balance, end of year (14.300) (15,119) (13,057) Repurchased Common Stock Balance, beginning of year (458) (34,286) (446) (32.757) (438) (31,468) Share repurchases (24) (3.000) (18) (2,000) (18) (2.000) Stock option exercises, RSUS, PSUs and PEPunits converted 6 6 10 708 Other 3 Balance, end of year (4-6) (36,769) (458) (34.286) (446) (32.757) Total PepsiCo Common Shareholders' Equity 14:518 11,045 Noncontrolling Interests Balance, beginning of year 84 104 Net income attributable to noncontrolling interests 39 51 Distributions to noncontrolling interests (42) (62) Other, net 1 (1) Balance, end of year 82 84 92 Total Equity S 14,868 S 14,602 $ 10,981 | 32.518 516 469 2 las (425 14.-86 92 44 (49) 14999 = THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, 2019 2018 2017 Net Operating Revenue $ 37,266 $ 34,300 $ 36,212 Cost of goods sold 14,619 13,067 13,721 Gross Profit 22,647 21,233 22,491 Selling, general and administrative expenses 12,103 11,002 12,834 Other operating charges 458 1,079 1,902 Operating Income 10,086 9,152 7,755 Interest income 563 689 679 Interest expense 946 950 853 Equity income (loss)-net 1,049 1,008 1,072 Other income (loss)-net 34 (1,674) (1,763) Income Before Income Taxes 10,786 8,225 6,890 Income taxes 1,801 1,749 5,607 Consolidated Net Income 8,985 6,476 1,283 Less: Net income (loss) attributable to noncontrolling interests 65 42 35 Net Income Attributable to Shareowners of The Coca-Cola Company $ 8,920 $ 6,434 $ 1,248 Basic Net Income Per Share $ 2.09 $ 1.51 $ 0.29 Diluted Net Income Per Share $ 2.07 $ 1.50 $ 0.29 Average Shares Outstanding-Basic 4,276 4,259 4,272 Effect of dilutive securities 38 40 52 Average Shares Outstanding-Diluted 4,314 4,299 4,324 1Calculated based on net income attributable to shareowners of The Coca-Cola Company. Refer to Notes to Consolidated Financial Statements. M' THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2019 2018 2017 Consolidated Net Income $ 8,985 $ 6,476 $ 1,283 Other comprehensive income: Net foreign currency translation adjustments 74 (2,035) 861 Net gains (losses) on derivatives (54) (7) (433) Net change in unrealized gains (losses) on available-for-sale securities 18 (34) 188 Net change in pension and other benefit liabilities (159) 29 322 Total Comprehensive Income 8,864 4,429 2,221 Less: Comprehensive income attributable to noncontrolling interests 110 95 73 Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company $ 8,754 $ 4,334 $ 2,148 Refer to Notes to Consolidated Financial Statements. THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 6,480 $ 9,077 n 7.947 9.266 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31 2019 2018 ASSETS Current Assets Cash and cash equivalents $ 6,480 $ 9,077 Short-term investments 1,467 2,025 Total Cash, Cash Equivalents and Short-Term Investments 11,102 Marketable securities 3,228 5,013 Trade accounts receivable less allowances of $524 and $501, respectively 3.971 3,685 Inventories 3:379 3,071 Prepaid expenses and other assets 1,886 2,059 Total Current Assets 20,411 24,930 Equity method investments 19,025 19:412 Other investments 854 867 Other assets 6.075 4,148 Deferred income tax assets 2.412 2,674 Property, plant and equipment-net 10,838 9,598 Trademarks with indefinite lives 6,682 Bottlers' franchise rights with indefinite lives 109 51 Goodwill 16.764 14,109 Other intangible assets 627 745 Total Assets $ 86,381 S 83,216 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses S 11.312 $ 9,533 Loans and notes payable 10.994 13,835 Current maturities of long-term debt 4:253 5,003 Accrued income taxes 414 Total Current Liabilities 26,973 28,782 Long-term debt 27,516 25,376 Other liabilities 8,510 7,646 Deferred income tax liabilities 2,284 2,354 The Coca-Cola Company Shareowners' Equity Common stock, $c-25 par value; authorized11,200 shares; issued7,040 shares 1,760 1.760 Capital surplus 17.154 16,520 Reinvested earnings 65.855 63,234 Accumulated other comprehensive income (loss) (13:544) (12,814) Treasury stock, at cost-2,760 and 2,772 shares, respectively (52.244) (52719) Equity Attributable to Shareowners of The Coca-Cola Company 18,981 16,981 Equity attributable to non controlling interests 2,117 2,077 Total Equity 21,098 19,058 Total Liabilities and Equity $ 86,381 $ 83,216 Refer to Notes to Consolidated Financial Statements. 411 2019 2018 2017 $ 8,985 $ 6,476 $ 1,283 1,365 1,260 201 219 (280) (1,252) (421) (628) 91 292 (467) 1,459 127 1,218 504 (252) 366 3,442 10,471 7,041 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31, Operating Activities Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss-net of dividends Foreign currency adjustments Significant (gains) losses-net Other operating charges Other items Net change in operating assets and liabilities Net Cash Provided by Operating Activities Investing Activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities Financing Activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year Less: Restricted cash and restricted cash equivalents at end of year Cash and Cash Equivalents at End of Year (4,704) 6,973 (5,542) 429 (2,054) 978 (56) (3,976) 3942992389|| 89819791) 12*83904 3:52 | (17,296) 16,694 (3,809) 3,821 (1,750) 108 (80) (2,312) 23,009 (24,850) (30,600) 1,012 (1,103) (6,845) (227) (9,004) (72) 29,926 (28,871) 1,595 (3,682) (6,320) (95) (7,447) 241 (2,581) 9,318 6.737 257 $ 6,480 $ 9,077 (2,477) 8,850 6,373 271 6,102 4-288 THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) Year Ended December 31 2019 2018 2017 Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year 4,268 4,259 Treasury stock issued to employees related to stock-based compensation plans 33 48 53 Purchases of stock for treasury (21) (39) (82) Balance at end of year 4,280 4,268 4,239 Common Stock $ 1,760 $ 1,760 $ 1,760 Capital Surplus Balance at beginning of year 16,520 15,864 14.993 Stock issued to employees related to stock-based compensation plans 433 467 655 Stock-based compensation expense 201 225 219 Other activities (36) Balance at end of year 17.154 16.520 15,864 Reinvested Earnings Balance at beginning of year 63.234 60,430 65,502 Adoption of accounting standards 546 3,014 Net income attributable to shareowners of The Coca-Cola Company 8.920 6,434 1,248 Dividends (per share-51.60, $156 and $1.48 in 2019, 2018 and 2017, respectively) (6,845) (6,644) 6,320) Balance at end of year 65,855 63 234 60,430 Accumulated Other Comprehensive Income (Loss) Balance at beginning of year (12,814) (10,305) (11.205) Adoption of accounting standards (564) (409) Net other comprehensive income (Loss) (166) (2,100) 900 Balance at end of year (13,544) (12,814) (10,305) Treasury Stock Balance at beginning of year (51,719) (50,677) (47,988) Treasury stock issued to employees related to stock-based compensation plans 501 704 909 Purchases of stock for treasury (1.026) (1,746) (3:598) Balance at end of year (52,244) (51,719) (50,677) Total Equity Attributable to Shareowners of The Coca-Cola Company S 18,981 $ 16,98 $ 17,072 Equity Attributable to Noncontrolling Interests Balance at beginning of year $ 2,077 $ 1,905 $ 158 Net income attributable to noncontrolling interests 65 42 35 Net foreign currency translation adjustments 45 53 38 Dividends paid to noncontrolling interests (48) (31) (15) Acquisition of interests held by noncontrolling owners (84) Contributions by noncontrolling interests 3 Business combinations 59 1,805 Deconsolidation of certain entities (157) Other activities 7 Total Equity Attributable to Noncontrolling Interests $ 2,117 $ 2,077 $ 1,905 101 41